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BY AAMERA JIWAJI
As the property market grows, more
Kenyans are buying and investing in
houses and apartments. Those who have
purchased property as an investment are quick
to rent it out in the hope that the rental incomewill oset a mortgage.
The Landlord and Tenant Bill, 2007, applies
to all residential and business premises, and is
designed to protect tenants from unlawful rent
increases and evictions. However, it only applies
to residential premises which have a rent less
than Sh15,000 per month and thus excludes the
majority of upmarket properties. Rent disputes
may be heard by the Rent Restriction Tribunal,
under the Distress for Rent Act (cap 293) but the
cost of bringing cases to tribunals discourages
its use.
South African estate agent Pam Goldings,
which recently opened in offices in Kenya,
says, what aspirant landlords should know is
that the rentals business is as well-controlled
and administered as the rest of the property
industry; its no seat of the pants business.
The danger, however, is that the landlords
rights are much more protected than the rent-
ers, and the Global Property Guide describes
the Kenyan rental market pro-landlord. With
no legal recourse, all that protects the landlord
and the tenant is the lease agreement.
PROPERTY LAW
What to look out for in a leasebefore signing the dotted line
Property&InvestmentsCONTENTSProperty agents make a kill from Kenyas real estateboom 53
5-10%The agents are paid a commission
of between 5% and 10% of rent
paid per house by every landlord.
options and terms for renewal, including the
annual increment in rent (for example 10%).
The contract must also clearly outline the
procedures to be followed in case of contract
termination or expiry, since this is the conten-
tious period when the tenant is still in posses-
sion of the residence but transitioning to
another. While rent payments are taken care
of, there are a number of tricky areas including
access to the house by the owner to show it to
prospective tenants.
Rent payment
Every owner will mandate advance payment of
rent, which ensures a reasonable notice period,
and the ability to withhold rent if repairs are
More than 70% of Kenyans pay rent, and the
majority of these leases are privately arranged,
which means that it may not be aligned with
current legislation. This does not oer su cient
legal protection and often leads to the exploita-
tion of the tenant.
So what are the key clauses that landlords
and tenants must look out for before signing
a rental agreement?
Lease and renewal options
It is good practice to specify the duration of the
contract (i.e. one year period) without leaving
it open-ended. This will allow the agreement
between the landlord and the tenant to natu-
rally expire, giving both parties the flexibility
to decide whether a renewal is mutually benefi-
cial. The contract also needs to clearly specify
Because the law protectslandlords more than tenants, youmust read the fine print whengetting into a new house
Pro-landlord rental market in Kenya puts tenantson notice
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required in case of damage. More sophisticated
contracts ask for a quarterly payment upfront,
with one cheque to cover the current month and
two post-dated cheques to cover two additional
months.
This period will, however, vary depending on
whether the premises are furnished or unfur-
nished (the standard practice is a longer period
for furnished premises).
In addition to monthly rent, the contract often
specifies that utility bills electricity, water,
telephone, service charges, garbage collection,
security etc are to be paid by the tenant.
Most owners usually pay for the value tax and
land rent for their property, but some choose to
pass it to the tenant, in which case this needs to
be clearly disclosed so that the tenant is aware
of the financial implication.
Ingoing and outgoing inspections
Any damage that is caused to the rental premises
during the duration of the existing tenancy is
directly the responsibility of the tenant, and
most contracts spell this out clearly. The more
detailed ones go so far as listing what is and is
not allowed, for instance alterations or addi-
tions to the premises through nails, screws or
other fasteners.
At the end of the tenancy period, most
contracts mandate that the tenant must paint
and varnish all rooms in the house, and restoreall furniture and fittings including keys or locks
that have been broken, lost or damaged during
the tenancy period.
Traditionally, tenants expect their landlord to
arrange for any plumbing, electrical or hardware
repairs that are needed but todays contracts pass
this to the tenant with the proviso that before
taking occupation of the premises, the tenant
verifies that everything is in working order.
All these maintenance related clauses ulti-
mately allow the landlord to force the tenant
to take responsibility and bear the financial
implications for anything that is not in work-
ing order upon his exit.
This means that new tenants need to thor-
oughly inspect premises before taking posses-
sion, and flag any broken or damaged elements
otherwise they will be forced to pay for their
repair when they leave.
Standard additional clauses in lease agree-
ments include a commitment that the premises
will only be used for residential purposes, will
not be sub-let, and specify whether animals will
be allowed or not.
It is mid month and the queue outside a tiny
office measuring about 2 by 2 metres in
Nairobis central business district is growing
longer by the minute.
A young man in the office fills bank slips
from clients who are in a rush to beat the
deadline for paying house rent. Others have
come with complaints about their electricity
and water bills, while some want their leaking
tanks repaired or walls repainted.
Caleb Ngunjiri, the young man in the office,
works for a property agent and on this August
midday, he is serving tenants who stay in
houses managed by an agent. His employer
is among hundreds of property managers in
the capital, who have sprung up in the recent
years in the rapid growth of the real estate
Kenya.
Increased demand for residential and
commercial properties, especially in the
capital, has offered agents lucrative business
opportunities. Many people have seized the
opportunity to become property agents,managing commercial and residential houses
for busy landlords. The business is lucrative,
going by the number of people joining it as
Kenyas housing industry continues to register
phenomenal growth.
From the tiny office in the city centre,
Ngunjiris employer manages over 15 proper-
ties scattered across the capital. Many of
them are apartments with at least three
floors. The houses have two and three bed-
rooms, said Ngunjiri.
Their main work involves ensuring tenants
pay rent on time, attending to queries and
complaints and liaising with the landlord on
maintenance. We also look for new tenants,
help them settle in the houses and clear with
those who are vacating, he noted.
But Ngunjiris employer does not receive
rent from tenants on behalf of landlords. Our
contracts with landlords do not allow us to
handle rent from tenants. Landlords have
given us bank account numbers, which we
pass to tenants. Tenants deposit the money in
the account and bring to us slips for account-
ing purposes, he said.
The agents are paid a commission of
between 5% and 10% of rent paid per house
by every landlord. Property agents rake
thousands of shillings from the business every
month. This is beside other commissions thatthey charge potential tenants and landlords,
which include searching and viewing fees
and property listing fee respectively. There
is good money in property management busi-
ness, especially if you have numerous clients.
The commission is good, noted Antony
Kuyo of Avent Property Agents in Nairobis
eastlands area. He noted that most landlords
in the capital are currently contracting agents
to manage their properties. Landlords are
finding it easier to work with agents than
deal with tenants directly, which can be very
frustrating, he said.
However, emergence of agents in the
multi-billion dollars sector that is unregulat-
ed has come with various challenges for both
tenants and landlords. Some rogue agents,
especially those in low and middle-income ar-
eas of the capital, take advantage of tenants
to con them and lay blame on the landlord.On
the other hand, rent for various property has
shot up in the East African nation to cater for
agents fees.
MANAGEMENT
Property agents make a killfrom Kenyas real estate boom
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LIFE TRAVEL RESTAURANT REVIEWS FILM& THEATRE ART MUSIC BOOK REVIEW
Society&Culture
BOOKREVIEW
BY AAMERA JIWAJI
Matteo Guzzinis speech is punctu-
ated with pauses as he searches for
the right words to express himself,
whether it is in Italian, English or Swahili.
He begins many of his sentences with Allora,
a colloquial Italian word which means well
.... And like many people new to the English
language, he prefers the present tense I
arrive, I take, I go which adds a sense of
immediacy to his speech.
But the challenges he experiences when
trying to say something melt away when he
communicates through his photographs.
All of a sudden it doesnt matter that he is
an Italian native who moved to Watamu
three years ago, or that he doesnt speak
fluent English or Swahili. With his camera,
he conveys the humility of the religion of
Islam, the gracefulness of waves as they carve
Hes seen the lightHeir to lighting empiresettles in coastal townof Watamu and makes
it big in photography
THROUGH THE VIEWFINDER
ThebookoffersaglimpseintothepsycheofthisEasternpower,itscultureandthestorybehindthegreatChineseeconomy.
CONTENTS
The hidden story behind Chinas success 63
The lastword on Management 64
a pattern on a bed of sand, and the wisdom
etched into the face of a Maasai elder. Pauses,
tenses and slang disappear in this intensely
powerful moment of communication.
Matteo Guzzini is one of the heirs to the
iGuzzini family empire, a 50-year-old compa-
ny that produces Europes most exclusively
designed lights. He graduated from univer-
sity and first worked at a marketing agency
in Italy, but had a passion for photography. A
visit to Watamu in 2000 for a holiday with his
family changed his fortunes and his future.
Twelve years ago, Watamu was empty,
says Matteo. There were only two lodges.
After two days in Watamu, my family decided
to buy a house here. For me, it was the reali-
sation of a dream.
As a young boy, he says, he would look
lustily at pictures from National Geographic
of Maasai Mara and Amboseli. Kenyas rich
diverse landscapes brought to life his dreams
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Society&Culture
This will be the first book to show all the differentMaasais: the ones from Ngorongoro, Lake Natron,
Tanzania, Maasai Mara, Loitokitok and Samburu.
in a way that Italys urban and rural settings
never could.
Matteos visions of Kenya stayed with
him as he returned to Italy to trade on
the European and North American stock
exchanges. Some months later, global stockmarkets crashed and he realised he needed
to distance himself from the emotions of
the market, and its allure of haraka profit
through hasty buy or sell decisions. In that
moment I understood that to spend the time
in front of the laptop and to see the stock
market move was to lose time. Instead I
preferred to stay away and look at the stock
market kidogo, he says.
Matteo restarted his life by moving to
Kenya. Initially, he apprenticed for Armando
Tanzini, an Italian artist based in Kenya for
over 30 years. A renowned architect and
sculptor, Tanzini had designed the Safari
Park Hotel in Nairobi and was known in
coastal circles as the man who designed
Malindi. Together, they published a book
called P O Box Kenya Africa, which featured
Matteos photographs of Tanzinis work. It
was a stimulating start for me, says Matteo,
and it oered direction to his passion for
photography.
The second book to carry Matteos work
is an Italian publication entitled The Last
Warrior in Africa. It will be published by Skira,
a leading Italian publisher of photography,
followed by an exhibition of Matteos photog-
raphy in Milan in January 2013 and in Nairobi
in April or May.
My passion has always been travel. I have
visited the border of Ethiopia, Somalia, Tana
River, Taveta, Busia, Mumias, Kakamega,
Kisumu, Matteo says. It was his one-month
long stay with the Maasai in Samburu andMaralal, and the photographs he took during
this time, which gave birth to this second
book.
This will be the first book to show
all the dierent Maasais: the ones from
Ngorongoro, Lake Natron, Tanzania, Maasai
Mara, Loitokitok and Samburu.
The national networks that Matteo has
built in Kenya over three years have made
him a port of call for Italian media. So earlier
this year, when journalists from Italy wanted
to do a documentary on the Al Shabaab and
their activities in Lamu, Matteo arranged
interviews with members of the Al Shabaab
group.
For the next phase of the documentary,
they will visit the drought-stricken areas of
Garissa, a conflict-ridden border post.
Parallel to his passion for photography,
Matteo continues to follow the stock
markets. Everyday I wait for news on what
is happening in the market in Italy, or Spain
or Greece or Germany. In the last months, I
have spent a lot of time in front of the laptop
My passionhas alwaysbeen travel. I
have visitedthe borderof Ethiopia,Somalia,Tana River,Taveta, Busia,Mumias,Kakamega,Kisumu,Matteo says.It was hisone-month
long stay withthe Maasaiin Samburuand Maralal,and thephotographshe tookduring thistime, whichgave birth tothis secondbook.
Matteo Guzzinis
photographsdocument the
different Maasaigroups in East
Africa.
Italian born photographer Matteo Guzzini
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to make trade because the markets, theygo very fast up and down so if you take a
good moment and you buy when they break
some level you can find money. In the same
moment I dont make speculation for only
one day or today. This is also the time to
invest money in the stocks market because
the prices are very down.
Matteo says he invests in a basket of stocks
but sees a lot of potential in financials,
and is focusing on a Russian hedge fund,
which recently bought 70% of the stocks of
Unicredit, one of the largest Italian banks.
He sees clear parallels between his photog-
raphy and his passion for stock trading: both
demand patience, and quick action at the
perfect moment.
To take a picture you have to be very
relaxed because sometimes you have only
five seconds, he says. You have to have a
nice light on the face, on the eyes; you have
to see the things that happen around you
and if you are stressed you dont see nothing
around you. You become selfish, you dont
see the soul of what is happening.
He started taking photographs 15 years
ago when he was 25, and gradually honed
his skills. Today, he describes himself as a
portrait photographer: a genre where you
take the perfect moment when people show
an emotion. In the photograph you describe
the moment, he says. I want to be like a
hunter. Someone who goes around with a
gun, you weigh the moment and you shoot.
Matteo is well aware of the enormity of the
decision and the great sacrifice that it took
when he chose life as a photographer over the
Guzzini family empire. When you have a big
business like my family which is worth Sh40
billion and you have 2,500 people work-
ing you have to be really professional and
serious. You cant just go there to try and be a
good manager. If you are in such an industry
Society&Culture
Muslim
childre
peer
throug
doorw
Lamu
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BOOK REVIEW
Atrain trip from Hong Kong
through Shenzhen, Dong-
guan to Qaungzhou doesnt
reveal the factories adjacent to these cities and
the people inside. These are industrial cities, like
other coastal cities of China. Yet the people in the
factories are the most important resource of Chinas
success. And 70% are women, while over 95% are
migrants from distant villages in interior China. And
hundreds of items like shoes, handbags, beauty
products, and materials which are today supplied
to developing and developed world are created by
these women.
Author Leslie T Chang, an American of Chinese
origin and a correspondent for the Wall Street
Journal, follows the lives of two ordinary girls in her
book Factory Girls. Lu Qingmin and Wu Chunming
grow up in the village; leave home in their mid teens
partly because the boys are respected more than
them and because there is nothing to do at home.Like 130 million others, they go to the cities to earn
a living. They are an explanation of what China is
today. Migrants create the economy of China, earn-
ing as little as 200 Yuan a month, (Sh2400). They
learn English, Mandarin and basic computer courses
which catapults them to success and save thou-
sands and even millions of shillings in a few years.
They send home over Sh80,000 a year and change
their lives and those of their families. They soon call
the shots back home. A few years later they begin
to date, start a business, get married and even buy
homes in the cities. The long-held dream of going
back home and getting married to a local man
fades.
Factory Girls is about the self-improvement,
ambition and resilience of the human spirit. Beyond
that, the book offers a glimpse into the psyche of
this Eastern power, its culture, and through the
narratives of a group of women, the story behind the
great Chinese economy. It is about the triumph of a
disadvantaged people in a competitive world.
Mr. Kipchumba is a Consultant with Quest Works and
adjunct faculty at Strathmores Executive Education
Author: Leslie T Chang
Factory Girls
The hidden story
behind Chinas
Success
About iGuzzini
The Guzzini family business has
worked with light for over 50
years. A company that makes indoor
lighting and outdoor lighting luminar-
ies, it was established in 1959 and is
now the leading Italian company in
the lighting design sector.
Since its inception, the company
has focused on the idea that the qual-
ity of a designed light is fundamental
to contributing to the quality of the
environment and so its applications
across the world are developed in
collaboration with leading architects
and designers, and known for their
subtlety and elegance. As a result,the company has received numer-
ous international design awards
including the coveted Guggenheim
Prize. iGuzzinis designs illuminate
the most popular locations in the
world including Leicester Square in
London, Cathedral of Resurrection in
St Petersburg, Rolex tower in Dubai,
and the Shirvanshahs in Azerbaijan.
Their designs are also displayed at
international museums, which trace
the changing fortunes of the industry
and the transition from copper to
plastic casings.
iGuzzini is a family business owned
and managed by the Guzzini families
who took over the business after the
demise of its founder, Mariano Guzzi-
ni. It is the leading lighting companyin Europe, and recently established
subsidiary offices in Shanghai but it is
yet to expand into Africa.
you have to work 365 days a year, 24 hours a
day, you have to put 2,000% in the industry.
At 40, Matteo is the youngest amongst his
brothers and his 19 cousins, and the only one
who has not been absorbed into the industry.
Not all of us are born to be on the frontline,
to be a manager, to sacrifice all his life to the
business. I was born free. I want freedom. I
am like a bird, I like to fly here, there.
His parents had nurtured hope that Matteo
would eventually return to the fold: My
mother and father had a lot of dream for my
future but I was not clear. So it was a very
strong decision to go away and take my life
and do what I wanted to do.
In a characteristic shrug, Matteo shakes o
any regrets and di cult memories from the
past, and says, Allora, I know that here I can
do something good for myself. Something
good for the Kenyans who are my friends.
When you havea big business likemy family whichis worth Sh40billion and youhave 2,500 peopleworking you
have to be reallyprofessional andserious. You cantjust go there totry and be a goodmanager. If you arein such an industryyou have to work365 days a year, 24hours a day, youhave to put 2,000%in the industry.
As a portrait photographer, he exercises a great deal of
patience to capture the perfect moment.